Schneider Logistics to Acquire American Port Services

Jun 21, 2005

In a bid to increase its presence in international logistics, Schneider Logistics announced it will acquire cross-dock and deconsolidation center operator American Port Services.

American Port Services has traditionally been concentrated in the Southeast operating cross-dock and deconsolidation services at Jacksonville, Savannah, Atlanta, Charleston, and Norfolk. It has expanded that reach into the port of Houston and is currently developing a 600,000 square-foot cross-dock facility on a 30-acre site in the Seattle/Tacoma area and has leased a facility nine miles from the ports of Los Angeles and Long Beach which it will develop to support Asia imports, says George Powers, president of American Port Services.

There is no doubt that a strong West Coast presence is needed, says Tom Escott, president of Schneider Logistics, but he believes companies are looking for a balanced approach that includes capabilities at Eastern and Gulf Coast ports. Given congestion on the West Coast, he sees the opportunity in all-water alternatives that are developing using the Panama and Suez Canals, making American Port Services a ready fit. Commenting on Schneider Logistics’ recent expansion into China, he agreed that it was the beginning of efforts to develop business ties and opportunities there. The new Shanghai office has started the process of applying for licenses to develop its non-asset businesses there.

Escott sees the China business developing in much the same way the company entered Europe. There, the freight audit business has been growing steadily. The company also offers managed transportation services in Europe and expects to do the same in China. Escott says the developing import logistics services it is providing in Europe and China should also benefit from the expertise of American Port Services.

Founded in 1987, American Port Services provides transloading and deconsolidation, warehousing and distribution services, export packing, local dray service and value-add services such as repackaging. American Port Services reports that 70% of its facilities are dedicated and 30% shared-use facilities.

Schneider National, parent of the logistics operation, is a $3.2 billion transportation and logistics company specializing in truckload and intermodal freight movement. The company disclosed that approximately 21% of its revenues are derived from international business.

Schneider is looking at ways to expand services and is actively involved in discussions in and outside the U.S. and would consider acquisitions or strong strategic alliances, according to Chris Lofgren, president and CEO of Schneider National.